Despite NYC’s strong job market propping up demand — and therefore prices — in the rental market, the mere 1.2% year-over-year increase in wages has not been nearly enough to counter the 8.6% increase in asking rents. Meanwhile, declining wages in the Memphis, Boston, and Chicago metro areas have made slightly more modest increases in asking rents even more challenging. 

StreetEasy data also found that Tampa, Miami, and Jacksonville occupied three of the top five spots where rent growth has most dramatically outpaced wage growth since 2019-2023. During the pandemic, Florida became a hotspot due to its ideal weather and relatively affordable housing compared to many coastal markets. The increase in housing demand has led to surging rents, while wages in Florida struggle to keep up. Even Miami, where wage growth has been slightly above the national average, saw a 50% increase in rents, which is the most dramatic jump of any US market. This has left a huge gap between the income that residents are earning and the income they need to afford to live in the area. 

While the lack of affordable housing is impacting residents across the country, cities like San Francisco, Portland, and Austin have seen a slight decline in rent prices as the market stabilized in 2022. Meanwhile, wage growth in these areas continued to climb.